Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 25, 2018

EMPIRE STATE REALTY TRUST, INC.

(Exact Name of Registrant as Specified in its Charter)


Maryland	001-36105	37-1645259
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

EMPIRE STATE REALTY OP, L.P.

(Exact Name of Registrant as Specified in its Charter)


Delaware	001-36106	45-4685158
(State or other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

111 West 33^rd Street, 12^th Floor

New York, New York

10120

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (212) 687-8700

n/a

(Former name or former address, if changed from last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.

Results of Operations and Financial Condition.

On April 25, 2018, Empire State Realty Trust, Inc. (the “Company” or “we”) issued a press release announcing its financial results for the first quarter 2018. The press release referred to certain supplemental information that is available on the Company’s website. The press release and the supplemental information are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

The information in Item 2.02 of this Current Report, including Exhibits 99.1 and 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 7.01.

Regulation FD Disclosure

As discussed in Item 2.02 above, the Company issued a press release regarding its financial results for the first quarter 2018 and made available on its website certain supplemental information relating thereto.

The information in Item 7.01 of this Current Report is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section. Such information shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act or the Exchange Act, unless it is specifically incorporated by reference therein.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.		Description

99.1		Press Release announcing financial results for the first quarter 2018

99.2		Supplemental report

Non-GAAP Supplemental Financial Measures

Funds From Operations (“FFO”)

deferred financing costs), less distributions to non-controlling interests and gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.

Modified Funds From Operations (“Modified FFO”)

Modified FFO adds back an adjustment for any above or below-market ground lease amortization to traditionally defined FFO. We consider this a useful supplemental measure in evaluating our operating performance due to the non-cash accounting treatment under GAAP, which stems from the third quarter 2014 acquisition of two option properties following our formation transactions as they carry significantly below market ground leases, the amortization of which is material to our overall results. We present Modified FFO because we consider it an important supplemental measure of our operating performance in that it adds back the non-cash amortization of below-market ground leases. There can be no assurance that Modified FFO presented by us is comparable to similarly titled measures of other REITs. Modified FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Modified FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions.

Core Funds From Operations (“Core FFO”)

Core FFO adds back to Modified FFO the following items: acquisition expenses, deferred tax asset write-off and loss on early extinguishment of debt. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes non-recurring items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

Core Funds Available for Distribution (“Core FAD”)

In addition to Core FFO, we present Core FAD by (i) adding to Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash compensation expense and (ii) deducting straight line rent, recurring second generation leasing commissions, tenant improvements, prebuilts, capital expenditures, furniture, fixtures & equipment purchases, amortization of debt premiums and above/below market rent revenue. Core FAD is presented solely as a supplemental disclosure that management believes provides useful information regarding our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.

Net Operating Income (“NOI”)

properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly-timed purchases or sales. We believe that eliminating these costs from net income is useful because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs. However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with. Other companies may use different methods for calculating NOI or similarly titled measures and, accordingly, our NOI may not be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

EBITDA

We compute EBITDA as net income plus interest expense, income taxes and depreciation and amortization. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity.

SIGNATURE

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	EMPIRE STATE REALTY TRUST, INC.
	(Registrant)

Date: April 25, 2018	By:	/s/ David A. Karp
		Name: David A. Karp
		Title: Executive Vice President and Chief Financial Officer

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	EMPIRE STATE REALTY OP, L.P. (Registrant)

	By: Empire State Realty Trust, Inc., as general partner

Date: April 25, 2018	By:	/s/ David A. Karp
		Name: David A. Karp
		Title: Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

EMPIRE STATE REALTY TRUST ANNOUNCES FIRST QUARTER 2018 RESULTS

- Earnings of $0.06 Per Fully Diluted Share -

- Core FFO of $0.20 Per Fully Diluted Share -

- Leased 259,530 Square Feet of Office and Retail Space -

New York, New York, April 25, 2018—Empire State Realty Trust, Inc. (NYSE: ESRT) (the “Company”), a real estate investment trust with office and retail properties in Manhattan and the greater New York metropolitan area, today reported its operational and financial results for the first quarter of 2018.

“We continued to execute our long-term strategy to consolidate, redevelop and re-lease space to larger, higher credit quality tenants at higher rents and create long-term value for shareholders. During the quarter, we leased approximately 260,000 square feet of office and retail space that resulted in attractive spreads on both new Manhattan office and total portfolio leases of 23.8% and 11.4%, respectively. Our well-located, amenity-rich office buildings, continue to draw a diverse group of prospective tenants. Our value price point between trophy Class A and Class B properties positions us well to capture steady tenant demand,” stated John B. Kessler, Empire State Realty Trust’s President and Chief Operating Officer.

“For the quarter, the Observatory overcame the 102^nd floor observation deck’s scheduled closure for replacement of original elevator machinery with a new, higher speed glass elevator with revenue growth of 1.5% and Observatory net operating income growth of 1.7% driven by higher attendance, improved revenue mix and continued expense management,” added Kessler. “We further strengthened our balance sheet with the closing of the final tranches of a $450 million private placement of unsecured senior notes. The proceeds were used to repay our remaining 2018 mortgage maturities and bolster our cash position. We continue to manage the business with a long-term perspective as we proactively position the balance sheet to fund our redevelopment program and allow for potential external growth opportunities.”

First Quarter Highlights

•

Achieved net income attributable to the Company of $0.06 per fully diluted share.

•

Core Funds From Operations (“Core FFO”) was $0.20 per fully diluted share.

•

Occupancy and leased percentages at March 31, 2018:

•

Total portfolio was 88.1% occupied; including signed leases not commenced (“SLNC”), the total portfolio was 91.5% leased.

•

Manhattan office portfolio (excluding the retail component of these properties) was 87.3% occupied; including SLNC, the Manhattan office portfolio was 91.6% leased.

•

Retail portfolio was 89.7% occupied; including SLNC, the retail portfolio was 91.4% leased.

•

Empire State Building was 92.8% occupied; including SLNC, was 93.9% leased.

•

Signed 41 leases, representing 259,530 rentable square feet across the total portfolio, and achieved a portfolio-wide 11.4% increase in mark-to-market rent over previous fully escalated rents on new, renewal, and expansion leases.

•

Signed 20 new leases representing 158,932 rentable square feet for the Manhattan office portfolio (excluding the retail component of these properties), and achieved an increase of 23.8% in mark-to-market rent over previous fully escalated rents.

•

Empire State Building Observatory revenue for the first quarter 2018 grew 1.5% to $21.2 million from $20.9 million in the first quarter 2017. The 102^nd floor observatory was closed during first quarter 2018 for replacement of original elevator machinery with a new, higher speed glass elevator. If the $1.9 million in revenue in first quarter 2017 from the 102^nd floor observatory is excluded, in the comparable 2018 period revenue increased 11.4%.

•

Lease termination fees and other revenue and fees totaled $6.7 million which included $2.8 million related to the settlement reached with a former broadcast tenant.

•

Issued long-term, fixed rate unsecured financing of $335 million that increased weighted average term to maturity to 8.8 years, from 6.2 years, at December 31, 2017.

•

Declared a dividend of $0.105 per share.

Financial Results for the First Quarter 2018

Net income attributable to common stockholders was $9.8 million, or $0.06 per fully diluted share, compared to $10.0 million, or $0.06 per fully diluted share, in the first quarter of 2017.

Core FFO was $59.3 million, or $0.20 per fully diluted share, compared to $61.3 million, or $0.21 per fully diluted share, in the first quarter of 2017.

Modified FFO was $59.3 million, or $0.20 per fully diluted share, compared to $61.3 million, or $0.21 per fully diluted share, in the first quarter of 2017.

FFO was $57.3 million, or $0.19 per fully diluted share, compared to $59.3 million, or $0.20 per fully diluted share, in the first quarter of 2017.

A reconciliation of net income to FFO, Modified FFO and Core FFO is provided in the tables accompanying this press release.

Portfolio Operations

As of March 31, 2018, the Company’s total portfolio contained 10.1 million rentable square feet of office and retail space. The Company’s occupancy levels fluctuate in certain periods due to the timing lag that exists between the date of tenants’ move out and the date of Company’s completion of redevelopment work for new leases to commence. As of March 31, 2018, the Company’s portfolio was occupied and leased as follows. Leased percentages include signed leases not commenced.


	March 31, 2018			December 31, 2017			March 31, 2017
Percent occupied:
Total portfolio		88.1	%		89.6	%		88.8	%
Total office		88.0	%		89.5	%		88.3	%
Manhattan office		87.3	%		89.0	%		87.8	%
Empire State Building		92.8	%		93.6	%		91.5	%
Retail		89.7	%		92.0	%		94.4	%
Percent leased:
Total portfolio		91.5	%		92.2	%		89.5	%
Total office		91.5	%		92.1	%		89.2	%
Manhattan office		91.6	%		92.1	%		88.6	%
Empire State Building		93.9	%		94.2	%		91.7	%
Retail		91.4	%		93.9	%		94.5	%

Leasing

For the three months ended March 31, 2018, the Company signed 41 new, renewal, and expansion leases within the total portfolio, comprising 259,530 rentable square feet with an average starting rental rate of $57.29 per rentable square foot, representing an increase of 11.4% over the previous fully escalated rent.

On a blended basis, the 31 new, renewal, and expansion office leases, comprising 192,896 rentable square feet, signed within the Manhattan office portfolio during the first quarter had an average starting rental rate of $58.94 per rentable square foot, representing an increase of 19.1% over the previous fully escalated rent.

Leases Signed in the First Quarter 2018 for the Manhattan Office Portfolio

•

20 new leases, comprising 158,932 rentable square feet, with an average starting rental rate of $59.51 per rentable square foot, representing an increase of 23.8% over the previous fully escalated rent, and

•

11 renewal leases, comprising 33,964 rentable square feet, with an average starting rental rate of $56.31 per rentable square foot, representing an increase of 0.2% over the previous fully escalated rent.

Significant Leases Executed During the First Quarter 2018

•

At 111 West 33^rd Street, the Company signed a new full floor office lease, totaling 41,800 rentable square feet, with Nestlé’s Nespresso USA, Inc., for a term of 10.7 years.

•

At 1400 Broadway, the Company signed a new full floor office lease, totaling 34,600 rentable square feet, with Uber Technologies, Inc., for a term of 8.8 years.

•

At One Grand Central Place, the Company signed a new full floor office lease, totaling 12,700 rentable square feet, with the William T. Grant Foundation, for a term of 16.2 years.

Empire State Building

The Company continues to renovate and lease the 2.8 million rentable square foot Empire State Building, its flagship property. As previously announced in the second quarter 2017, the Company commenced the first phase of a capital project to enhance the experience of office and retail tenants and Observatory visitors. The first phase is underway, and will move the Observatory entrance to a new, larger, designated entrance at the western side of the Empire State Building on 34^th Street, which will improve the commercial tenant and office visitor experience and the value of the Empire State Building’s 34^th Street retail. The Company expects the new entrance to open in the third quarter of 2018.

During the first quarter 2018, the Company signed five office leases at the Empire State Building, representing 25,674 rentable square feet in the aggregate.

Observatory revenue for the first quarter 2018 was $21.2 million, a 1.5% increase from $20.9 million in the first quarter 2017. The Observatory overcame the 102nd floor observation deck’s scheduled closure for replacement of original elevator machinery with a new, higher speed glass elevator. If the $1.9 million

in revenue in first quarter 2017 from the 102nd floor observatory is excluded, in the comparable 2018 period, revenue increased 11.4%. The Observatory hosted approximately 660,000 visitors in the first quarter 2018 compared to 636,000 visitors in the first quarter 2017, an increase of 3.8%. This year, the Easter holiday was spilt between the first and second quarters whereas in the prior year, the Easter holiday fell entirely within the second quarter. In the first quarter 2018, there were 15 bad weather days compared to 22 bad weather days in the first quarter 2017. For the first quarter, the Company estimates that bad weather resulted in approximately fourteen thousand net fewer visitors than in the prior year period.

Balance Sheet

At March 31, 2018, there was no outstanding balance on the Company’s $1.1 billion unsecured revolving credit facility and $265 million outstanding under the term loan facility. The facilities have an accordion feature allowing for an additional increase in the maximum aggregate principal balance to $1.75 billion under certain circumstances. The Company held cash and cash equivalents of $690.5 million at March 31, 2018.

As of March 31, 2018, the Company had total debt outstanding of approximately $1.9 billion, with a weighted average interest rate of 3.84% per annum, and a weighted average term to maturity of 8.8 years. None of the Company’s outstanding debt is subject to variable interest rates. At March 31, 2018, the Company’s consolidated net debt to total market capitalization was approximately 19.5% and consolidated net debt to EBITDA was 3.5x.

In January 2018, the Company refinanced and increased its mortgage debt on 1333 Broadway from $66.6 million to $160.0 million, due February 2033 with interest fixed at 4.21%. A portion of this increase was applied to release the $75.8 million mortgage lien on 1400 Broadway.

In March 2018, the Company issued and sold $335 million of senior unsecured notes as the final tranches of a $450 million private placement. The notes consist of $160 million 4.26% Series E Senior Notes due 2030 and $175 million 4.44% Series F Senior Notes due 2033. Proceeds were applied towards repayment of the Company’s mortgage indebtedness on 111 West 33^rd Street and 1350 Broadway and added to cash balances.

Dividend

On March 30, 2018, the Company paid a dividend of $0.105 per share for the first quarter 2018 to holders of the Company’s Class A common stock and Class B common stock and to holders of the operating partnership’s Series ES, Series 250 and Series 60 operating partnership units (NYSE Arca: ESBA, FISK and OGCP, respectively) and Series PR operating partnership units. The Company paid a dividend of $0.15 per unit for the first quarter 2018 to holders of the operating partnership’s private perpetual preferred units.

Webcast and Conference Call Details

Empire State Realty Trust, Inc. will host a webcast and conference call, open to the general public, on Thursday, April 26, 2018 at 8:30 am Eastern time.

The webcast will be accessible in the “Investors” section of the Company’s website at www.empirestaterealtytrust.com. To listen to the live webcast, go to the site at least five minutes prior to the scheduled start time in order to register, download and install any necessary audio software. Shortly after the call, a replay of the webcast will be available for 90 days on the Company’s website.

The conference call can also be accessed by dialing 1-877-407-3982 for domestic callers or 1-201-493-6780 for international callers. A dial-in replay will be available starting shortly after the call until May 3, 2018, which can be accessed by dialing 1-844-512-2921 for domestic callers or 1-412-317-6671 for international callers. The passcode for this dial-in replay is 13678748.

The Supplemental Report will be available prior to the conference call in the “Investors” section of the Company’s website, www.empirestaterealtytrust.com.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous building.

Headquartered in New York, New York, the Company’s office and retail portfolio covers 10.1 million rentable square feet, as of March 31, 2018, consisting of 9.4 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut, and two in Westchester County, New York; and approximately 700,000 rentable square feet in the retail portfolio.

Forward-Looking Statements

This press release includes “forward looking statements” within the meaning of the federal securities laws. Forward-looking statements may be identified by the use of words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “pro forma,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or the negative of these words and phrases or similar words or phrases. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in our industry, the real estate markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of legal proceedings involving the company; reduced demand for office or retail space; general volatility of the capital and credit markets and the market price of our Class A common stock and our publicly-traded operating partnership units; changes in our business strategy; changes in technology and market competition which affect utilization of our broadcast or other facilities; changes in domestic or international tourism, including geopolitical events and currency exchange rates; defaults on, early terminations of, or non-renewal of, leases by tenants; fluctuations in interest rates; declining real estate valuations and impairment charges; termination or expiration of our ground leases; our failure to obtain or maintain necessary outside financing, including our unsecured revolving credit facility; our leverage; decreased rental rates or increased vacancy rates; our failure to redevelop and reposition properties, or to execute any newly planned capital project, successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate development (including our Metro Tower development site) and capital projects, including the cost of construction delays and cost overruns; impact of changes in governmental regulations, tax law and rates and similar matters; and our failure to qualify as a real estate investment trust, or REIT. For a further discussion of these and other factors that could impact the Company’s future results, performance or transactions, see the section entitled “Risk Factors” in the Annual Report on Form 10-K for the year ended December 31, 2017, and other risks described in documents subsequently filed by the Company from time to time with the Securities and Exchange Commission.

While forward-looking statements reflect the Company’s good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events, or other changes after the date of this press release, except as required by applicable law. Prospective investors should not place undue reliance on any forward-looking statements, which are based only on information currently available to the Company (or to third parties making the forward-looking statements).

Contact:

Investors

Empire State Realty Trust Investor Relations

(212) 850-2678

IR@empirestaterealtytrust.com

Media

Sard Verbinnen & Co.

(212) 687-8080

Empire State Realty Trust, Inc.

Condensed Consolidated Statements of Income

(unaudited and amounts in thousands, except per share data)


	Three Months Ended March 31,
	2018			2017
Revenues
Rental revenue	$	122,311		$	117,113
Tenant expense reimbursement		17,794			15,974
Observatory revenue		21,249			20,940
Lease termination fees		622			7,938
Third-party management and other fees		463			351
Other revenue and fees		6,057			2,638

Total revenues		168,496			164,954
Operating expenses
Property operating expenses		44,185			42,210
Ground rent expenses		2,331			2,331
General and administrative expenses		12,628			11,088
Observatory expenses		7,336			7,255
Real estate taxes		26,744			24,558
Depreciation and amortization		39,883			40,846

Total operating expenses		133,107			128,288

Total operating income		35,389			36,666
Other expenses:
Interest expense		(17,591	)		(17,742	)
Loss from derivative financial instruments		—			(247	)

Income before income taxes		17,798			18,677
Income tax benefit		260			468

Net income		18,058			19,145
Preferred unit distributions		(234	)		(234	)
Net income attributable to non-controlling interests		(8,056	)		(8,926	)

Net income attributable to common stockholders	$	9,768		$	9,985

Total weighted average shares
Basic		162,667			156,493

Diluted		296,827			297,962

Net income per share attributable to common stockholders
Basic	$	0.06		$	0.06

Diluted	$	0.06		$	0.06

Empire State Realty Trust, Inc.

Reconciliation of Net Income to Funds From Operations (“FFO”),

Modified Funds From Operations (“Modified FFO”) and Core Funds From Operations (“Core FFO”)

(unaudited and amounts in thousands, except per share data)


	Three Months Ended March 31,
	2018			2017
Net income	$	18,058		$	19,145
Preferred unit distributions		(234	)		(234	)
Real estate depreciation and amortization		39,468			40,424

FFO attributable to common stockholders and non-controlling interests		57,292			59,335
Amortization of below-market ground leases		1,958			1,958

Modified FFO attributable to common stockholders and non-controlling interests		59,250			61,293
Core FFO attributable to common stockholders and non-controlling interests	$	59,250		$	61,293

Total weighted average shares
Basic		296,824			296,388

Diluted		296,827			297,962

FFO per share
Basic	$	0.19		$	0.20

Diluted	$	0.19		$	0.20

Modified FFO per share
Basic	$	0.20		$	0.21

Diluted	$	0.20		$	0.21

Core FFO per share
Basic	$	0.20		$	0.21

Diluted	$	0.20		$	0.21

Empire State Realty Trust, Inc.

Condensed Consolidated Balance Sheets

(unaudited and amounts in thousands)


	March 31,			December 31,
	2018			2017
Assets
Commercial real estate properties, at cost	$	2,705,083		$	2,667,655
Less: accumulated depreciation		(678,250	)		(656,900	)

Commercial real estate properties, net		2,026,833			2,010,755
Cash and cash equivalents		690,471			464,344
Restricted cash		61,699			65,853
Tenant and other receivables		25,156			28,329
Deferred rent receivables		184,667			178,629
Prepaid expenses and other assets		39,393			61,028
Deferred costs, net		255,844			262,701
Acquired below market ground leases, net		366,271			368,229
Goodwill		491,479			491,479

Total assets	$	4,141,813		$	3,931,347

Liabilities and equity
Mortgage notes payable, net	$	610,826		$	717,164
Senior unsecured notes, net		1,043,677			707,895
Unsecured term loan facility, net		263,777			263,662
Unsecured revolving credit facility		—			—
Accounts payable and accrued expenses		106,830			110,849
Acquired below market leases, net		62,418			66,047
Deferred revenue and other liabilities		37,499			40,907
Tenants’ security deposits		43,448			47,086

Total liabilities		2,168,475			1,953,610
Total equity		1,973,338			1,977,737

Total liabilities and equity	$	4,141,813		$	3,931,347

EX-99.2

Exhibit 99.2

First Quarter 2018


*Table of Contents*	*Page*
*Summary*
Company Profile		3
Financial Highlights		4
*Selected Property Data*
Property Summary Net Operating Income		5
Net Operating Income and Initial Free Rent Burn-Off		6
Leasing Activity		7
Portfolio Expirations and Vacates Summary		9
Property Detail		10
Tenant Lease Expirations		11
Largest Tenants and Portfolio Tenant Diversification by Industry		14
Capital Expenditures and Redevelopment Program		15
Observatory Summary		16
*Financial information*
Condensed Consolidated Balance Sheets		17
Condensed Consolidated Statements of Income		18
Core FFO, Modified FFO, FFO, FAD and EBITDA		19
Consolidated Debt Analysis
Debt Summary		20
Debt Detail		21
Debt Maturities		22
Ground Leases		22
Supplemental Definitions		23

Forward-looking Statements

We make forward-looking statements in this supplemental package within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You should not rely on them as predictions of future events. For these statements, we claim the protections of the safe harbor for forward-looking statements contained in such Sections.

You can identify forward-looking statements by the use of forward-looking terminology such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “contemplates,” “aims,” “continues,” “would” or “anticipates” or similar words or phrases in the positive or negative. In particular, forward looking statements include those pertaining to our capital resources, portfolio performance, dividend policy, results of operations, anticipated growth in our portfolio from operations, acquisitions, and market conditions and demographics.

Forward-looking statements involve numerous risks and uncertainties, many of which are difficult to predict and generally beyond our control. They depend on assumptions, data or methods which may be incorrect or imprecise, and we may not be able to realize them. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all).

The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: changes in our industry and markets, either nationally or in Manhattan or the greater New York metropolitan area; resolution of legal proceedings involving our company; reduced demand for office or retail space; new office or observatory development in our market; general volatility of the capital and credit markets and the market price of our Class A common stock and listed operating partnership units; changes in our business strategy; defaults on, early terminations of, or non-renewal of, leases by tenants; insolvency of a major tenant or a significant number of smaller tenants; litigation; fluctuations in interest rates; increased operating costs; declining real estate valuations and impairment charges; availability, terms and deployment of capital; our failure to obtain necessary outside financing; our expected leverage; decreased rental rates or increased vacancy rates; breach of or the expiration of our ground lease; our failure to generate sufficient cash flows to service our outstanding indebtedness; our failure to redevelop, renovate and reposition properties or to execute any planned capital project, successfully or on the anticipated timeline or at the anticipated costs; difficulties in identifying properties to acquire and completing acquisitions; risks of real estate acquisitions, dispositions and development (including our Metro Tower development site), including construction delays and cost overruns; our failure to operate acquired properties and operations successfully; our ability to manage our growth effectively; changes in governmental regulations, tax laws and rates and similar matters; estimates relating to our ability to make distributions to our securityholders in the future; our failure to qualify as a REIT; a future terrorist event in the U.S.; environmental uncertainties and risks related to adverse weather conditions and natural disasters; lack or insufficient amounts of insurance; financial market fluctuations; availability of, and our ability to attract and retain, qualified personnel; conflicts of interest affecting our senior management team; competition; changes in real estate and zoning laws and increases in real property tax rates; inability to comply with applicable rules and regulations and, in particular, public companies and damages resulting from security breaches through cyberattacks, cyber intrusions or otherwise, as well as other significant disruptions of our technology (IT) networks related systems. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. We disclaim any obligation to update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, or new information, data or methods, future events or other changes after the date of this presentation, except as required by applicable law. For a further discussion of these and other factors that could impact our future results, performance or transactions, see the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2017 and other risks described in documents we subsequently file from time to time with the Securities and Exchange Commission.

Page 2

First Quarter 2018

COMPANY PROFILE

Empire State Realty Trust, Inc., or the Company, is a leading real estate investment trust (REIT) that owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous building.

BOARD OF DIRECTORS


Anthony E. Malkin		Chairman and Chief Executive Officer
William H. Berkman		Director, Chair of Finance Committee
Leslie D. Biddle		Director
Thomas J. DeRosa		Director
Steven J. Gilbert		Director, Lead Director
S. Michael Giliberto		Director, Chair of Audit Committee
James D. Robinson IV		Director, Chair of Compensation and Nominating/Corporate Governance Committees

EXECUTIVE MANAGEMENT


Anthony E. Malkin		Chairman and Chief Executive Officer
John B. Kessler		President and Chief Operating Officer
Thomas P. Durels		Executive Vice President, Real Estate
David A. Karp		Executive Vice President and Chief Financial Officer
Thomas N. Keltner, Jr.		Executive Vice President, General Counsel and Secretary

COMPANY INFORMATION


Corporate Headquarters	Investor Relations	New York Stock Exchange
111 West 33rd Street, 12th Floor	Greg Faje	Trading Symbol: ESRT
New York, NY 10120	IR@empirestaterealtytrust.com
www.empirestaterealtytrust.com
(212) 687-8700

RESEARCH COVERAGE


Bank of America Merrill Lynch	Jeffrey Spector	(646) 855-1363	jeff.spector@baml.com
	James Feldman	(646) 855-5808	james.feldman@baml.com
BMO Capital Markets Corp.	John Kim	(212) 885-4115	jp.kim@bmo.com
BTIG	Thomas Catherwood	(212) 738-6140	tcatherwood@btig.com
Evercore ISI	Steve Sakwa	(212) 446-9462	steve.sakwa@evercoreisi.com
	Robert Simone	(212) 446-9459	robert.simone@evercoreisi.com
Goldman Sachs & Co. LLC	Andrew Rosivach	(212) 902-4736	rosivach@gs.com
Green Street Advisors	Jed Reagan	(949) 640-8780	jreagan@greenstreetadvisors.com
KeyBanc Capital Markets	Jordan Sadler	(917) 368-2280	jsadler@key.com
	Craig Mailman	(917) 368-2316	cmailman@key.com
Stifel	John Guinee	(443) 224-1307	jwguinee@stifel.com
Wells Fargo Securities, LLC	Blaine Heck	(443) 263-6529	blaine.heck@wellsfargo.com

Page 3

First Quarter 2018

Financial Highlights

(unaudited and dollars in thousands, except per share amounts)


	Three Months Ended
Selected Items:	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Revenue	$	168,496		$	183,070		$	187,320		$	177,124		$	164,954
Net income	$	18,058		$	32,260		$	35,489		$	31,359		$	19,145
Cash net operating income ⁽¹⁾	$	82,374		$	99,671		$	101,314		$	97,270		$	82,781
Core funds from operations (“Core FFO”) ⁽¹⁾	$	59,250		$	74,914		$	77,503		$	73,215		$	61,293
Core funds available for distribution (“Core FAD”) ⁽¹⁾	$	51,170		$	57,467		$	64,201		$	61,546		$	53,721
Core FFO per share—diluted	$	0.20		$	0.25		$	0.26		$	0.25		$	0.21
Diluted weighted average shares		296,827,000			297,898,000			297,871,000			298,398,000			297,962,000
Dividends declared and paid per share	$	0.105		$	0.105		$	0.105		$	0.105		$	0.105
Portfolio Statistics:
Number of properties		20			20			20			20			20
Total rentable square footage		10,143,376			10,144,638			10,137,074			10,139,660			10,145,676
Percent occupied ⁽²⁾		88.1	%		89.6	%		89.8	%		89.2	%		88.8	%
Percent leased ⁽³⁾		91.5	%		92.2	%		91.7	%		91.3	%		89.5	%
Observatory Metrics:
Number of visitors		660,000			1,014,000			1,276,000			1,126,000			636,000
Change in visitors year over year		3.8	%		(5.1	%)		(4.8	%)		0.2	%		(11.5	%)
Observatory revenues	$	21,249		$	32,906		$	39,306		$	33,966		$	20,940
Change in revenues year over year		1.5	%		(2.4	%)		3.1	%		6.9	%		(1.4	%)
Ratios:
Consolidated Debt to Total Market Capitalization ⁽⁴⁾		27.4	%		21.5	%		20.4	%		20.2	%		20.6	%
Consolidated Net Debt to Total Market Capitalization ⁽⁴⁾		19.5	%		16.6	%		15.7	%		15.5	%		14.8	%
Consolidated Debt and Perpetual Preferred Units to Total Market Capitalization ⁽⁴⁾		27.8	%		21.9	%		20.7	%		20.6	%		20.9	%
Consolidated Net Debt and Perpetual Preferred Units to Total Market Capitalization ⁽⁴⁾		19.9	%		17.0	%		16.1	%		15.8	%		15.2	%
Consolidated Debt to EBITDA ⁽⁵⁾		5.5x			4.8x			4.5x			4.5x			4.7x
Consolidated Net Debt to EBITDA ⁽⁵⁾		3.5x			3.5x			3.3x			3.3x			3.2x
Interest Coverage Ratio		4.4x			5.8x			5.6x			5.5x			4.9x
Core FFO Payout Ratio ⁽⁶⁾		53	%		42	%		41	%		43	%		51	%
Core FAD Payout Ratio ⁽⁷⁾		62	%		55	%		49	%		51	%		58	%
Class A common stock price at quarter end	$	16.79		$	20.53		$	20.54		$	20.77		$	20.64
Average closing price	$	18.10		$	20.46		$	20.48		$	21.05		$	20.66
Dividends per share—annualized	$	0.42		$	0.42		$	0.42		$	0.42		$	0.42
Dividend yield ⁽⁸⁾		2.5	%		2.0	%		2.0	%		2.0	%		2.0	%
Private Perpetual Preferred Units outstanding ($16.62 liquidation value)		1,560,360			1,560,360			1,560,360			1,560,360			1,560,360
Class A common stock		163,321,049			160,424,575			158,349,708			157,493,025			156,689,477
Class B common stock		1,048,161			1,052,469			1,077,740			1,080,475			1,095,114
Operating partnership units		138,627,149			138,932,443			140,989,373			141,844,339			142,583,324

Total common stock and operating partnership units outstanding ⁽⁹⁾		302,996,359			300,409,487			300,416,821			300,417,839			300,367,915

Notes:

(1)	Represents non-GAAP financial measures. For a discussion on what these metrics represent and why the Company presents them, see page 23 and for a reconciliation of these metrics to net income, see pages 6 and 19.

(2)	Based on leases signed and commenced as of end of period.

(3)	Represents occupancy and includes signed leases not commenced.

(4)

Market capitalization represents the sum of (i) Company’s common stock per share price as of March 31, 2018 multiplied by the total outstanding number of shares of common stock and operating partnership units as of March 31, 2018; (ii) the number of perpetual preferred units at March 31, 2018 multiplied by $16.62 and (iii) our outstanding indebtedness or net indebtedness as of March 31, 2018.

(5)	Calculated based on trailing 12 months EBITDA.

(6)	Represents the amount of Core FFO paid out in distributions.

(7)	Represents the amount of Core FAD paid out in distributions.

(8)	Based on the closing price per share of Class A common stock on March 31, 2018.

(9)

As of March 31, 2018, the Company has had conversions from operating partnership units and Class B common shares to Class A common shares totaling 39 million shares or approximately $657 million at a closing share price of $16.79. This represents a 48% increase in the number of Class A shares since the IPO.

Page 4

First Quarter 2018

Property Summary—Net Operating Income (“NOI”) by Quarter

(unaudited and dollars in thousands)


	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Total Portfolio
Revenue	$	146,784		$	149,852		$	147,669		$	142,766		$	143,663
Operating expenses		(73,260	)		(70,319	)		(70,502	)		(65,403	)		(69,099	)

Net operating income (“NOI”)		73,524			79,533			77,167			77,363			74,564
Straight-line rent		(5,853	)		(5,963	)		(6,861	)		(7,722	)		(5,998	)
Above/below-market rent revenue amortization		(1,168	)		(1,567	)		(1,607	)		(1,119	)		(1,428	)
Below-market ground lease amortization		1,958			1,958			1,957			1,958			1,958

Total cash NOI—excluding Observatory		68,461			73,961			70,656			70,480			69,096
Observatory cash NOI		13,913			25,710			30,658			26,790			13,685

Total cash NOI—including Observatory	$	82,374		$	99,671		$	101,314		$	97,270		$	82,781

Manhattan Office Portfolio ⁽¹⁾
Revenue	$	123,528		$	125,195		$	124,195		$	118,014		$	116,746
Operating expenses		(63,218	)		(59,760	)		(60,052	)		(55,230	)		(59,105	)

NOI		60,310			65,435			64,143			62,784			57,641
Straight-line rent		(6,089	)		(5,840	)		(6,825	)		(7,305	)		(6,550	)
Above/below-market rent revenue amortization		(1,168	)		(1,567	)		(1,607	)		(1,119	)		(1,428	)
Below-market ground lease amortization		1,958			1,958			1,957			1,958			1,958

Cash NOI	$	55,011		$	59,986		$	57,668		$	56,318		$	51,621

Greater New York Office Portfolio
Revenue	$	18,697		$	19,710		$	18,582		$	19,721		$	22,121
Operating expenses		(8,425	)		(8,800	)		(8,565	)		(8,425	)		(8,300	)

NOI		10,272			10,910			10,017			11,296			13,821
Straight-line rent		(285	)		(272	)		(190	)		(460	)		467
Above/below-market rent revenue amortization		—			—			—			—			—
Below-market ground lease amortization		—			—			—			—			—

Cash NOI	$	9,987		$	10,638		$	9,827		$	10,836		$	14,288

Standalone Retail Portfolio
Revenue	$	4,559		$	4,947		$	4,892		$	5,031		$	4,796
Operating expenses		(1,617	)		(1,759	)		(1,885	)		(1,748	)		(1,694	)

NOI		2,942			3,188			3,007			3,283			3,102
Straight-line rent		521			149			154			43			85
Above/below-market rent revenue amortization		—			—			—			—			—
Below-market ground lease amortization		—			—			—			—			—

Cash NOI	$	3,463		$	3,337		$	3,161		$	3,326		$	3,187

Note:

⁽¹⁾	Includes 506,352 rentable square feet of retail space in the Company’s nine Manhattan office properties.

Page 5

First Quarter 2018

Net Operating Income (“NOI”) and Initial Free Rent Burn-Off

(unaudited and dollars in thousands)


	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Reconciliation of Net Income to NOI and Cash NOI
Net income	$	18,058		$	32,260		$	35,489		$	31,359		$	19,145
Add:
General and administrative expenses		12,628			13,749			12,899			12,579			11,088
Depreciation and amortization		39,883			40,842			38,490			40,532			40,846
Interest expense		17,591			16,364			16,890			17,477			17,742
Loss on early extinguishment of debt		—			—			2,157			—			—
Loss from derivative financial instruments		—			—			—			42			247
Income tax expense (benefit)		(260	)		2,340			2,245			2,556			(468	)
Less:
Third-party management and other fees		(463	)		(312	)		(345	)		(392	)		(351	)

Net operating income		87,437			105,243			107,825			104,153			88,249
Straight-line rent		(5,853	)		(5,963	)		(6,861	)		(7,722	)		(5,998	)
Above/below-market rent revenue amortization		(1,168	)		(1,567	)		(1,607	)		(1,119	)		(1,428	)
Below-market ground lease amortization		1,958			1,958			1,957			1,958			1,958

Total cash NOI—including Observatory		82,374			99,671			101,314			97,270			82,781
Less: Observatory NOI		(13,913	)		(25,710	)		(30,658	)		(26,790	)		(13,685	)

Total cash NOI—excluding Observatory	$	68,461		$	73,961		$	70,656		$	70,480		$	69,096

Cash NOI by Portfolio
Manhattan Office Portfolio	$	55,011		$	59,986		$	57,668		$	56,318		$	51,621
Greater New York Office Portfolio		9,987			10,638			9,827			10,836			14,288
Standalone Retail Portfolio		3,463			3,337			3,161			3,326			3,187

Total cash NOI—excluding Observatory		68,461			73,961			70,656			70,480			69,096
Observatory cash NOI		13,913			25,710			30,658			26,790			13,685

Total cash NOI—including Observatory	$	82,374		$	99,671		$	101,314		$	97,270		$	82,781

Schedule of Initial Free Rent Burn-Off

As of March 31, 2018, the Company had approximately $44 million of annualized cash rents that have yet to contribute to Cash NOI:


	Annualized Initial Base
	Annualized Initial Base		Cumulative Contribution to Annualized Base Rent in the Following Years:
Total Portfolio	Cash Rent		2018		2019		2020		2021
Commenced leases in free rent period	$	22,168	$	7,472	$	21,223	$	22,168	$	22,168
Signed leases not commenced		21,418		686		12,130		20,731		21,418

Total	$	43,586	$	8,158	$	33,353	$	42,899	$	43,586


Signed leases not commenced
Tenant	Square Feet		3/31/18 Escalated Annual Rent		New Annual Rent		Expected Cash Base Rent Commencement Date		Incremental Annual Revenue
Hoguet Newman Regal & Kenney		12,732	$	—	$	850		Dec. 2018	$	850
RZO, LLC		12,635		—		820		Apr. 2019		820
ASCAP		87,943		—		5,250		May 2019		5,250
Raysearch		12,807		—		870		Jun. 2019		870
Nespresso		41,835		—		2,380		Jun. 2019		2,380
TJX Companies		18,965		450		1,900		Jul. 2019		1,450
William T. Grant Foundation		12,725		—		830		Aug. 2019		830
Fragoman, Del Rey, Bernsen & Loewy LLP		107,680		1,870		5,920		Mar. 2020		4,050
Other SLNC		84,034		—		4,918		Jun. 2018 - May 2019		4,918

Total		391,356	$	2,320	$	23,738			$	21,418

Page 6

First Quarter 2018

Property Summary—Leasing Activity by Quarter

(unaudited)


	Three Months Ended
	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017			March 31, 2017
Total Portfolio
Total leases executed		41		55		34		51			27
Weighted average lease term		7.1 years		8.1 years		12.2 years		9.3 years			10.6 years
Average free rent period		4.8 months		6.4 months		9.3 months		6.9 months			10.2 months
Office
Total square footage executed		253,626		252,244		487,854		300,269			157,973
Average rent psf—leases executed	$	54.51	$	56.14	$	52.52	$	55.22		$	50.81
Previously escalated rents psf	$	48.53	$	44.85	$	41.12	$	40.61		$	47.48
Percentage of new rent over previously escalated rents		12.3%		25.2%		27.7%		36.0%			7.0%
Retail
Total square footage executed		5,904		22,744		—		29,597			43,019
Average rent psf—leases executed	$	175.43	$	115.33	$	—	$	40.66		$	99.96
Previously escalated rents psf	$	175.43	$	86.38	$	—	$	48.13		$	24.60
Percentage of new rent over previously escalated rents		—		33.5%		—		(15.5%	)		306.3%
Total Portfolio
Total square footage executed		259,530		274,988		487,854		329,866			200,992
Average rent psf—leases executed	$	57.29	$	61.42	$	52.52	$	54.39		$	61.33
Previously escalated rents psf	$	51.44	$	48.45	$	41.12	$	41.52		$	42.58
Percentage of new rent over previously escalated rents		11.4%		26.8%		27.7%		31.0%			44.0%
Leasing commission costs per square foot	$	15.35	$	18.06	$	22.15	$	17.74		$	28.01
Tenant improvement costs per square foot		49.54		65.95		72.92		68.24			48.84

Total LC and TI per square foot ⁽²⁾	$	64.89	$	84.01	$	95.07	$	85.98		$	76.85

Occupancy		88.1%		89.6%		89.8%		89.2%			88.8%
Manhattan Office Portfolio ⁽¹⁾
Total leases executed		31		41		27		43			24
Office—New Leases
Total square footage executed		158,932		170,669		276,964		208,594			68,163
Average rent psf—leases executed	$	59.51	$	61.31	$	58.79	$	60.11		$	59.82
Previously escalated rents psf	$	48.05	$	45.80	$	40.24	$	40.11		$	48.88
Percentage of new rent over previously escalated rents		23.8%		33.9%		46.1%		49.9%			22.4%
Office—Renewal Leases
Total square footage executed		33,964		43,237		38,180		42,447			16,997
Average rent psf—leases executed	$	56.31	$	53.72	$	56.12	$	58.07		$	57.98
Previously escalated rents psf	$	56.22	$	47.65	$	50.02	$	54.92		$	49.68
Percentage of new rent over previously escalated rents		0.2%		12.7%		12.2%		5.7%			16.7%
Retail—New and Renewal Leases
Total square footage executed		—		20,366		—		2,454			43,019
Average rent psf—leases executed	$	—	$	99.98	$	—	$	111.42		$	99.96
Previously escalated rents psf	$	—	$	70.61	$	—	$	128.87		$	24.60
Percentage of new rent over previously escalated rents		—		41.6%		—		(13.5%	)		306.3%
Total Manhattan Office Portfolio
Total square footage executed		192,896		234,272		315,144		253,495			128,179
Average rent psf—leases executed	$	58.94	$	63.27	$	58.46	$	60.26		$	73.04
Previously escalated rents psf	$	49.49	$	48.30	$	41.42	$	43.45		$	40.84
Percentage of new rent over previously escalated rents		19.1%		31.0%		41.1%		38.7%			78.9%
Leasing commission costs per square foot	$	18.56	$	19.02	$	26.21	$	21.97		$	36.49
Tenant improvement costs per square foot		63.22		69.16		80.69		79.19			45.02

Total LC and TI per square foot ⁽²⁾	$	81.78	$	88.18	$	106.90	$	101.16		$	81.51

Occupancy		87.3%		89.0%		89.2%		88.7%			88.1%

Page 7

First Quarter 2018

Property Summary—Leasing Activity by Quarter—(Continued)

(unaudited)


	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Greater New York Office Portfolio
Total leases executed		8			11			7			6			3
Total square footage executed		60,730			38,338			172,710			49,228			72,813
Average rent psf—leases executed	$	39.85		$	35.89		$	41.68		$	32.02		$	40.71
Previously escalated rents psf	$	45.36		$	37.45		$	40.57		$	30.41		$	45.66
Percentage of new rent over previously escalated rents		(12.1	%)		(4.2	%)		2.7	%		5.3	%		(10.8	%)
Leasing commission costs per square foot	$	4.21		$	10.35		$	14.74		$	5.71		$	13.08
Tenant improvement costs per square foot		7.89			50.40			58.76			49.50			55.57

Total LC and TI per square foot ⁽²⁾	$	12.10		$	60.75		$	73.50		$	55.21		$	68.65

Occupancy		90.8	%		91.2	%		91.3	%		90.5	%		90.7	%
Standalone Retail Portfolio
Total leases executed		2			3			—			2			—
Total square footage executed		5,904			2,378			—			27,143			—
Average rent psf—leases executed	$	175.42		$	246.78		$	—		$	34.26		$	—
Previously escalated rents psf	$	175.42		$	221.47		$	—		$	40.83		$	—
Percentage of new rent over previously escalated rents		—			11.4	%		—			(16.1	%)		—
Leasing commission costs per square foot	$	25.20		$	48.45		$	—		$	—		$	—
Tenant improvement costs per square foot		31.31			—			—			—			—

Total LC and TI per square foot ⁽²⁾	$	56.51		$	48.45		$	—		$	—		$	—

Occupancy		97.3	%		99.4	%		99.4	%		99.4	%		99.4	%

Notes:

⁽¹⁾	Includes 506,352 rentable square feet of retail space in the Company’s nine Manhattan office properties.

⁽²⁾	Presents all tenant improvement and leasing commission costs as if they were incurred in the period in which the lease was signed, which may be different than the period in which they were actually paid.

Page 8

First Quarter 2018

Total Portfolio Expirations and Vacates Summary

(unaudited and in square feet)


	Three Months Ended												Full Year
	Actual			Forecast ⁽¹⁾			Forecast ⁽¹⁾			Forecast ⁽¹⁾			Actual + Forecast ⁽¹⁾			Forecast ⁽¹⁾
	March 31, 2018			June 30, 2018			September 30, 2018			December 31, 2018			2018			2019
Total Portfolio
Total Expirations		419,086			188,127			199,135			160,472			966,820			741,720
Less: Broadcasting		(19,511	)		(21,776	)		(7,730	)		(10,529	)		(59,546	)		(586	)

Office and Retail Expirations		399,575			166,351			191,405			149,943			907,274			741,134

Renewal & Relocations ⁽²⁾		76,747			29,903			57,158			61,574			225,382			180,311
New Leases ⁽³⁾		67,614			44,058			30,590			35,916			178,178			23,490
Tenant Vacates ⁽⁴⁾		108,114			79,729			30,190			30,674			248,707			133,661
Intentional Vacates ⁽⁵⁾		136,660			12,661			56,123			12,714			218,158			148,477
Hold-over / Unknown ⁽⁶⁾		10,440			—			17,344			9,065			36,849			255,195

Total Portfolio expirations and vacates		399,575			166,351			191,405			149,943			907,274			741,134

Manhattan Office Portfolio
Total Expirations		344,883			133,636			127,726			123,019			729,264			492,440
Less: Broadcasting		(19,511	)		(21,776	)		(7,730	)		(10,529	)		(59,546	)		(586	)

Office Expirations		325,372			111,860			119,996			112,490			669,718			491,854

Renewal & Relocations ⁽²⁾		53,121			16,535			50,599			33,601			153,856			89,091
New Leases ⁽³⁾		67,614			44,058			—			35,916			147,588			23,490
Tenant Vacates ⁽⁴⁾		70,092			38,848			28,185			21,194			158,319			91,009
Intentional Vacates ⁽⁵⁾		124,105			12,419			34,147			12,714			183,385			125,285
Hold-over / Unknown ⁽⁶⁾		10,440			—			7,065			9,065			26,570			162,979

Total expirations and vacates		325,372			111,860			119,996			112,490			669,718			491,854

Greater New York Office Portfolio
Office Expirations		54,661			50,369			69,404			37,209			211,643			222,824

Renewal & Relocations ⁽²⁾		22,316			13,368			6,559			27,729			69,972			91,220
New Leases ⁽³⁾		—			—			30,590			—			30,590			—
Tenant Vacates ⁽⁴⁾		32,345			37,001			—			9,480			78,826			42,652
Intentional Vacates ⁽⁵⁾		—			—			21,976			—			21,976			—
Unknown ⁽⁶⁾		—			—			10,279			—			10,279			88,952

Total expirations and vacates		54,661			50,369			69,404			37,209			211,643			222,824

Retail Portfolio
Retail Expirations		19,542			4,122			2,005			244			25,913			26,456

Renewal & Relocations ⁽²⁾		1,310			—			—			244			1,554			—
New Leases ⁽³⁾		—			—			—			—			—			—
Tenant Vacates ⁽⁴⁾		5,677			3,880			2,005			—			11,562			—
Intentional Vacates ⁽⁵⁾		12,555			242			—			—			12,797			23,192
Unknown ⁽⁶⁾		—			—			—			—			—			3,264

Total expirations and vacates		19,542			4,122			2,005			244			25,913			26,456

Notes:

⁽¹⁾	These forecasts, which are subject to change, are based on management’s expectations, including, among other things, discussions with and other information provided by tenants as well as management’s analyses of past historical trends.

⁽²⁾	For forecasted periods, “Renewals” assume tenants renew their existing leases in all or a portion of their current spaces, and “Relocations” assume tenants move within a building or within the Company’s portfolio.

⁽³⁾	For forecasted periods, “New Leases” represents leases that have been signed with a new tenant, a subtenant who signed a direct lease or a tenant who expanded. The lease commencement dates are not provided in this section.

⁽⁴⁾	For forecasted periods, “Tenant Vacates” assumes a tenant elects not to renew at the end of their existing lease or exercises an early termination option.

⁽⁵⁾	For forecasted periods, “Intentional Vacates” assumes the Company decides not to renew tenant at the end of their existing lease due to anticipated future redevelopment or for other reasons. This also may include early lease terminations.

⁽⁶⁾	For forecasted periods, “Unknown” represents tenants’ existing leases which do not fall into any of the above categories: Renewals & Relocations, New Leases, Tenant Vacates or Intentional Vacates and tenants’ whose intention is unknown.

Page 9

First Quarter 2018

Property Detail

(unaudited)


Property Name	Location or Sub-Market	Rentable Square Feet ⁽¹⁾		Percent Occupied ⁽²⁾			Annualized Rent ⁽³⁾		Annualized Rent per Occupied Square Foot ⁽⁴⁾		Number of Leases ⁽⁵⁾
*Manhattan Office Properties—Office*
The Empire State Building ⁽⁶⁾	Penn Station—Times Sq. South		2,711,465		93.7	%	$	141,004,797	$	55.50		182
One Grand Central Place	Grand Central		1,246,187		87.1	%		61,315,827		56.48		220
1400 Broadway ⁽⁸⁾	Penn Station—Times Sq. South		908,988		79.3	%		34,822,344		48.29		34
111 West 33rd Street ⁽⁹⁾	Penn Station—Times Sq. South		638,322		67.5	%		23,755,777		55.15		15
250 West 57th Street	Columbus Circle—West Side		476,982		75.2	%		20,253,726		56.48		79
501 Seventh Avenue	Penn Station—Times Sq. South		460,063		93.3	%		18,738,892		43.65		27
1359 Broadway	Penn Station—Times Sq. South		455,627		96.1	%		22,452,383		51.30		36
1350 Broadway ⁽¹⁰⁾	Penn Station—Times Sq. South		373,326		86.7	%		18,104,063		55.92		63
1333 Broadway	Penn Station—Times Sq. South		292,544		94.6	%		13,855,083		50.07		12

*Manhattan Office Properties—Office*			7,563,504		87.3	%		354,302,893		53.65		668
*Manhattan Office Properties—Retail*
The Empire State Building ⁽⁷⁾	Penn Station—Times Sq. South		104,241		70.0	%		13,271,094		181.85		14
One Grand Central Place	Grand Central		68,563		79.0	%		6,369,966		117.67		13
1400 Broadway ⁽⁸⁾	Penn Station—Times Sq. South		20,418		71.9	%		1,883,061		128.26		7
112 West 34th Street ⁽⁹⁾	Penn Station—Times Sq. South		90,132		100.0	%		22,404,847		248.58		4
250 West 57th Street	Columbus Circle—West Side		61,422		79.7	%		8,036,986		164.15		8
501 Seventh Avenue	Penn Station—Times Sq. South		35,558		88.3	%		1,983,248		63.15		9
1359 Broadway	Penn Station—Times Sq. South		27,243		100.0	%		2,181,579		80.08		6
1350 Broadway ⁽¹⁰⁾	Penn Station—Times Sq. South		31,774		100.0	%		6,780,827		213.41		6
1333 Broadway	Penn Station—Times Sq. South		67,001		100.0	%		8,696,056		129.79		4

*Manhattan Office Properties—Retail*			506,352		86.6	%		71,607,665		163.37		71

*Sub-Total/Weighted Average*
*Manhattan Office Properties—Office and Retail*			8,069,856		87.3	%		425,910,559		60.48		739

*Greater New York Metropolitan Area*
*Office Properties*
First Stamford Place ⁽¹¹⁾	Stamford, CT		793,142		92.7	%		31,316,606		42.58		55
Metro Center	Stamford, CT		284,816		86.8	%		14,208,404		57.45		27
383 Main Avenue	Norwalk, CT		262,923		91.0	%		7,710,441		32.22		22
500 Mamaroneck Avenue	Harrison, NY		294,570		86.5	%		7,257,702		28.49		33
10 Bank Street	White Plains, NY		232,361		94.3	%		7,827,951		35.74		35

*Sub-Total/Weighted Average Greater New York Metropolitan Area Office Properties*			1,867,812		90.8	%		68,321,103		40.29		172

*Standalone Retail Properties*
10 Union Square	Union Square		58,007		100.0	%		6,709,152		115.66		13
1542 Third Avenue	Upper East Side		56,250		100.0	%		3,800,915		67.57		4
1010 Third Avenue	Upper East Side		44,662		100.0	%		3,735,464		83.64		2
77 West 55th Street	Midtown		25,388		100.0	%		2,637,533		103.89		3
69-97 Main Street	Westport, CT		17,071		66.9	%		1,661,557		145.42		4
103-107 Main Street	Westport, CT		4,330		100.0	%		715,852		165.32		1

*Sub-Total/Weighted Average Standalone Retail Properties*			205,708		97.3	%		19,260,473		96.27		27

*Portfolio Total*			10,143,376		88.1	%	$	513,492,135	$	57.45		938

*Total/Weighted Average Office Properties*			9,431,316		88.0	%	$	422,623,997	$	50.92		840
*Total/Weighted Average Retail Properties*			712,060		89.7	%		90,868,138		142.34		98

*Portfolio Total*			10,143,376		88.1	%	$	513,492,135	$	57.45		938

Notes:

(1)	Excludes (i) 155,263 square feet of space across the Company’s portfolio attributable to building management use and tenant amenities and (ii) 69,789 square feet of space attributable to the Company’s observatory.

(2)	Based on leases signed and commenced as of March 31, 2018.

(3)	Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(4)	Represents annualized rent under leases commenced as of March 31, 2018 divided by occupied square feet.

(5)	Represents the number of leases at each property or on a portfolio basis. If a tenant has more than one lease, whether or not at the same property, but with different expirations, the number of leases is calculated equal to the number of leases with different expirations.

(6)	Includes 69,223 rentable square feet of space leased by the Company’s broadcasting tenants.

(7)	Includes 5,300 rentable square feet of space leased by WDFG North America, a licensee of the Company’s observatory.

(8)	Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 45 years (expiring December 31, 2063).

(9)	Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 59 years (expiring May 31, 2077).

(10)	Denotes a ground leasehold interest in the property with a remaining term, including unilateral extension rights available to the Company, of approximately 32 years (expiring July 31, 2050).

(11)	First Stamford Place consists of three buildings.

Page 10

First Quarter 2018

Tenant Lease Expirations

(unaudited)


*Total Lease Expirations*	Number of Leases Expiring ⁽¹⁾		Rentable Square Feet Expiring ⁽²⁾		Percent of Portfolio Rentable Square Feet Expiring			Annualized Rent ⁽³⁾		Percent of Annualized Rent			Annualized Rent Per Rentable Square Foot
Available		—		862,110		8.5	%	$	—		0.0	%	$	—
Signed leases not commenced		26		342,700		3.4	%		—		0.0	%		—
1Q 2018 ⁽⁴⁾		12		67,099		0.7	%		3,159,610		0.6	%		47.09
2Q 2018		59		188,127		1.9	%		10,394,542		2.0	%		55.25
3Q 2018		44		199,135		2.0	%		10,364,905		2.0	%		52.05
4Q 2018		43		160,472		1.6	%		7,298,672		1.4	%		45.48

Total 2018		158		614,833		6.1	%		31,217,729		6.1	%		50.77
1Q 2019		23		87,838		0.9	%		5,029,112		1.0	%		57.25
2Q 2019		32		175,654		1.7	%		9,317,108		1.8	%		53.04
3Q 2019		42		192,492		1.9	%		10,408,805		2.0	%		54.07
4Q 2019		41		285,736		2.8	%		13,332,017		2.6	%		46.66

Total 2019		138		741,720		7.3	%		38,087,042		7.4	%		51.35
2020		138		820,746		8.1	%		45,231,667		8.8	%		55.11
2021		97		691,243		6.8	%		38,369,523		7.5	%		55.51
2022		90		531,783		5.2	%		32,970,157		6.4	%		62.00
2023		65		632,185		6.2	%		36,816,315		7.2	%		58.24
2024		52		558,223		5.5	%		31,733,309		6.2	%		56.85
2025		51		374,755		3.7	%		27,745,286		5.4	%		74.04
2026		39		951,018		9.4	%		51,439,493		10.0	%		54.09
2027		41		539,247		5.3	%		30,984,879		6.0	%		57.46
Thereafter		69		2,482,813		24.5	%		148,896,735		29.0	%		59.97

Total		964		10,143,376		100.0	%	$	513,492,135		100.0	%	$	57.45

*Manhattan Office Properties ⁽⁵⁾*
Available		—		632,261		8.4	%	$	—		0.0	%	$	—
Signed leases not commenced		22		326,959		4.3	%		—		0.0	%		—
1Q 2018 ⁽⁴⁾		9		53,426		0.7	%		2,692,987		0.8	%		50.41
2Q 2018		46		133,636		1.8	%		7,374,806		2.1	%		55.19
3Q 2018		36		127,726		1.7	%		6,905,417		1.9	%		54.06
4Q 2018		32		123,019		1.6	%		6,569,968		1.9	%		53.41

Total 2018		123		437,807		5.8	%		23,543,178		6.6	%		53.78
1Q 2019		17		81,436		1.1	%		4,842,998		1.4	%		59.47
2Q 2019		21		95,143		1.3	%		4,809,062		1.4	%		50.55
3Q 2019		36		181,143		2.4	%		8,918,835		2.5	%		49.24
4Q 2019		34		134,718		1.8	%		7,339,458		2.1	%		54.48

Total 2019		108		492,440		6.6	%		25,910,353		7.4	%		52.62
2020		105		588,352		7.8	%		32,662,550		9.2	%		55.52
2021		59		450,664		6.0	%		24,071,936		6.8	%		53.41
2022		66		350,266		4.6	%		19,632,159		5.5	%		56.05
2023		47		469,392		6.2	%		25,453,481		7.2	%		54.23
2024		33		342,914		4.5	%		17,774,912		5.0	%		51.83
2025		31		225,745		3.0	%		13,065,308		3.7	%		57.88
2026		28		829,412		11.0	%		45,455,273		12.8	%		54.80
2027		27		387,245		5.1	%		21,280,863		6.0	%		54.95
Thereafter		41		2,030,047		26.7	%		105,452,880		29.8	%		51.95

Total Manhattan office properties		690		7,563,504		100.0	%	$	354,302,893		100.0	%	$	53.65

Notes:

(1)	If a lease has two different expiration dates, it is considered to be two leases (for the purpose of lease count and square footage).

(2)	Excludes (i) 155,263 rentable square feet of space across the Company portfolio attributable to building management use and tenant amenities and (ii) 69,789 square feet of space attributable to the Company’s observatory.

(3)	Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(4)	Represents leases that are included in occupancy as of March 31, 2018 and expire on March 31, 2018.

(5)	Excludes (i) retail space in the Company’s Manhattan office properties and (ii) the Empire State Building broadcasting licenses and observatory operations.

Page 11

First Quarter 2018

Tenant Lease Expirations

(unaudited)


*Greater New York Metropolitan* *Area Office Properties*	Number of Leases Expiring ⁽¹⁾		Rentable Square Feet Expiring ⁽²⁾		Percent of Portfolio Rentable Square Feet Expiring			Annualized Rent ⁽³⁾		Percent of Annualized Rent			Annualized Rent Per Rentable Square Foot
Available		—		168,621		9.0	%	$	—		0.0	%	$	—
Signed leases not commenced		3		3,281		0.2	%		—		0.0	%		—
1Q 2018 ⁽⁴⁾		3		13,673		0.7	%		466,623		0.7	%		34.13
2Q 2018		11		50,369		2.7	%		2,450,390		3.6	%		48.65
3Q 2018		7		69,404		3.7	%		3,188,697		4.7	%		45.94
4Q 2018		10		37,209		2.0	%		702,596		1.0	%		18.88

Total 2018		31		170,655		9.1	%		6,808,306		10.0	%		39.90
1Q 2019		6		6,402		0.3	%		186,114		0.3	%		29.07
2Q 2019		10		77,738		4.2	%		3,278,224		4.8	%		42.17
3Q 2019		2		5,099		0.3	%		168,518		0.2	%		33.05
4Q 2019		6		133,585		7.1	%		4,714,685		6.9	%		35.29

Total 2019		24		222,824		11.9	%		8,347,541		12.2	%		37.46
2020		24		203,761		10.9	%		9,014,144		13.2	%		44.24
2021		31		210,934		11.3	%		9,346,853		13.7	%		44.31
2022		15		121,876		6.5	%		4,471,248		6.5	%		36.69
2023		9		108,460		5.8	%		5,003,956		7.3	%		46.14
2024		7		186,890		10.0	%		8,226,758		12.0	%		44.02
2025		12		111,685		6.0	%		3,783,949		5.5	%		33.88
2026		3		51,255		2.7	%		1,527,154		2.2	%		29.80
2027		6		64,229		3.4	%		2,322,123		3.4	%		36.15
Thereafter		10		243,341		13.1	%		9,469,071		14.0	%		38.91

Total greater New York metropolitan area office properties		175		1,867,812		100.0	%	$	68,321,103		100.0	%	$	40.29

*Retail Properties*
Available		—		61,228		8.6	%	$	—		0.0	%	$	—
Signed leases not commenced		1		12,460		1.7	%		—		0.0	%		—
1Q 2018 ⁽⁴⁾		—		—		0.0	%		—		0.0	%		—
2Q 2018		2		4,122		0.6	%		569,346		0.6	%		138.12
3Q 2018		1		2,005		0.3	%		270,791		0.3	%		135.06
4Q 2018		1		244		0.0	%		26,108		0.0	%		107.00

Total 2018		4		6,371		0.9	%		866,245		1.0	%		135.97
1Q 2019		—		—		0.0	%		—		0.0	%		—
2Q 2019		1		2,773		0.4	%		1,229,822		1.4	%		443.50
3Q 2019		4		6,250		0.9	%		1,321,452		1.5	%		211.43
4Q 2019		1		17,433		2.4	%		1,277,874		1.4	%		73.30

Total 2019		6		26,456		3.7	%		3,829,148		4.2	%		144.74
2020		9		28,633		4.0	%		3,554,973		3.9	%		124.16
2021		7		29,645		4.2	%		4,950,734		5.4	%		167.00
2022		9		59,641		8.4	%		8,866,750		9.8	%		148.67
2023		9		54,333		7.6	%		6,358,878		7.0	%		117.04
2024		12		28,419		4.0	%		5,731,639		6.3	%		201.68
2025		8		37,325		5.2	%		10,896,029		12.0	%		291.92
2026		8		70,351		9.9	%		4,457,066		4.9	%		63.35
2027		8		87,773		12.3	%		7,381,893		8.1	%		84.10
Thereafter		18		209,425		29.4	%		33,974,783		37.4	%		162.23

Total retail properties		99		712,060		100.0	%	$	90,868,138		100.0	%	$	142.34

Notes:

(1)	If a lease has two different expiration dates, it is considered to be two leases (for the purpose of lease count and square footage).

(2)	Excludes (i) 155,263 rentable square feet of space across the Company portfolio attributable to building management use and tenant amenities and (ii) 69,789 square feet of space attributable to the Company’s observatory.

(3)	Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(4)	Represents leases that are included in occupancy as of March 31, 2018 and expire on March 31, 2018.

Page 12

First Quarter 2018

Tenant Lease Expirations

(unaudited)


*Empire State Building Office ⁽¹⁾*	Number of Leases Expiring ⁽²⁾		Rentable Square Feet Expiring ⁽³⁾		Percent of Portfolio Rentable Square Feet Expiring			Annualized Rent ^{(4) (5)}		Percent of Annualized Rent			Annualized Rent Per Rentable Square Foot
Available		—		140,678		5.2	%	$	—		0.0	%	$	—
Signed leases not commenced		3		30,059		1.1	%		—		0.0	%		—
1Q 2018 ⁽⁶⁾		—		—		0.0	%		—		0.0	%		—
2Q 2018		12		30,328		1.1	%		1,875,718		1.3	%		61.85
3Q 2018		4		32,842		1.2	%		1,980,818		1.4	%		60.31
4Q 2018		5		15,719		0.6	%		965,933		0.7	%		61.45

Total 2018		21		78,889		2.9	%		4,822,469		3.4	%		61.13
1Q 2019		9		14,785		0.5	%		773,630		0.5	%		52.33
2Q 2019		1		1,738		0.1	%		90,237		0.1	%		51.92
3Q 2019		1		5,588		0.2	%		314,910		0.2	%		56.35
4Q 2019		6		41,664		1.5	%		2,271,192		1.6	%		54.51

Total 2019		17		63,775		2.4	%		3,449,969		2.4	%		54.10
2020		37		300,273		11.1	%		17,607,043		12.5	%		58.64
2021		17		118,128		4.4	%		6,547,827		4.6	%		55.43
2022		22		96,214		3.5	%		5,929,005		4.2	%		61.62
2023		13		81,216		3.0	%		5,130,454		3.6	%		63.17
2024		13		92,516		3.4	%		5,728,031		4.1	%		61.91
2025		7		67,378		2.5	%		3,719,770		2.6	%		55.21
2026		11		502,152		18.5	%		28,149,072		20.0	%		56.06
2027		4		16,613		0.6	%		1,134,079		0.8	%		68.26
Thereafter		20		1,123,574		41.5	%		58,787,078		41.7	%		52.32

Total Empire State Building office		185		2,711,465		100.0	%	$	141,004,797		100.0	%	$	55.50



*Empire State Building Broadcasting Licenses and Leases*	Annualized Base Rent ⁽⁷⁾		Annualized Expense Reimbursements		Annualized Rent ^{(4) (8)}		Percent of Annualized Rent
1Q 2018 ⁽⁶⁾	$	487,150	$	109,635	$	596,785		3.1	%
2Q 2018		1,163,067		544,255		1,707,322		8.8	%
3Q 2018		1,424,351		717,094		2,141,445		11.1	%
4Q 2018		1,290,646		594,409		1,885,055		9.7	%

Total 2018		4,365,214		1,965,393		6,330,607		32.8	%
1Q 2019		212,240		47,696		259,936		1.3	%
2Q 2019		—		—		—		0.0	%
3Q 2019		—		—		—		0.0	%
4Q 2019		—		—		—		0.0	%

Total 2019		212,240		47,696		259,936		1.3	%
2020		955,809		151,799		1,107,608		5.7	%
2021		55,685		95,625		151,310		0.8	%
2022		1,124,545		248,224		1,372,769		7.1	%
2023		82,480		19,269		101,749		0.5	%
2024		45,894		60,712		106,606		0.6	%
2025		1,496,090		190,092		1,686,182		8.7	%
2026		768,750		76,826		845,576		4.4	%
2027		750,000		58,504		808,504		4.2	%
Thereafter		5,941,360		649,667		6,591,027		34.0	%

Total Empire State Building broadcasting licenses and leases	$	15,798,067	$	3,563,807	$	19,361,874		100.0	%

Notes:

(1)	Excludes retail space, broadcasting licenses and observatory operations

(2)	If a lease has two different expiration dates, it is considered to be two leases (for the purpose of lease count and square footage).

(3)	Excludes 25,937 rentable square feet of space attributable to building management use.

(4)	Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(5)	Includes approximately $8.1 million of annualized rent related to physical space occupied by broadcasting tenants for their broadcasting operations. Does not include license fees charged to broadcasting tenants.

(6)	Represents leases that are included in occupancy as of March 31, 2018 and expire on March 31, 2018.

(7)	Represents license fees for the use of the Empire State Building mast and base rent for physical space occupied by broadcasting tenants.

(8)	Excludes Fox Television whose lease expired during 2017 and was billed holdover rent as of March 31, 2018.

Page 13

First Quarter 2018

20 Largest Tenants and Portfolio Tenant Diversification by Industry

(unaudited)


20 Largest Tenants	Property	Lease Expiration ⁽¹⁾	Weighted Average Remaining Lease Term⁽²⁾	Total Occupied Square Feet ⁽³⁾		Percent of Portfolio Rentable Square Feet ⁽⁴⁾			Annualized Rent ⁽⁵⁾		Percent of Portfolio Annualized Rent ⁽⁶⁾
1.Global Brands Group	ESB, 1333 B’Way	Oct. 2023 - Oct. 2028	9.8 years		668,942		6.4	%	$	31,437,329		6.1	%
2.Coty	ESB	Jan. 2030	11.8 years		312,700		3.0	%		15,941,279		3.1	%
3.LinkedIn	ESB	Feb. 2026	7.9 years		282,782		2.7	%		15,031,208		2.9	%
4.PVH Corp.	501 Seventh Avenue	Apr 2018 - Oct. 2028	10.5 years		238,392		2.3	%		10,510,640		2.0	%
5.Sephora	112 West 34th Street	Jan. 2029	10.8 years		11,334		0.1	%		10,445,021		2.0	%
6.Li & Fung	1359 Broadway	Oct. 2021-Oct. 2027	6.0 years		149,436		1.4	%		7,297,593		1.4	%
7.Federal Deposit Insurance Corp.	ESB	Jan. 2020	1.8 years		121,879		1.2	%		7,013,460		1.4	%
8.Macy’s	111 West 33rd Street	May 2030	12.2 years		131,117		1.3	%		6,867,959		1.3	%
9.Urban Outfitters	1333 Broadway	Sept. 2029	11.5 years		56,730		0.5	%		6,831,727		1.3	%
10.Duane Reade	ESB, 1350 B’Way, 250 West 57th	Feb. 2021-Sept. 2027	6.7 years		47,541		0.5	%		6,280,903		1.2	%
11.Footlocker	112 West 34th Street	Sept. 2031	13.5 years		34,192		0.3	%		6,223,978		1.2	%
12.Legg Mason	First Stamford Place	Sept. 2024	6.5 years		137,583		1.3	%		6,215,355		1.2	%
13.WDFG North America	ESB	Dec. 2025	7.7 years		5,300		0.1	%		5,680,726		1.1	%
14.Shutterstock	ESB	Apr. 2029	11.1 years		104,386		1.0	%		5,589,650		1.1	%
15.Kohl’s	1400 Broadway	May 2029	11.2 years		113,032		1.1	%		4,919,135		1.0	%
16.Thomson Reuters	Metro Center	May 2018-Apr. 2020	1.5 years		91,921		0.9	%		4,899,770		1.0	%
17.The Gap, Inc.	111 West 33rd Street	Jan. 2030	11.8 years		80,903		0.8	%		4,611,471		0.9	%
18.HNTB Corporation	ESB	Feb. 2026	7.9 years		78,361		0.8	%		4,592,963		0.9	%
19.The Michael J. Fox Foundation	111 West 33rd Street	Nov. 2029	11.7 years		75,959		0.7	%		4,557,540		0.9	%
20.Target	112 West 34th Street	Jan. 2038	19.8 years		43,019		0.4	%		4,300,000		0.8	%

Total					2,785,509		26.8	%	$	169,247,707		32.8	%

Notes:

(1)	Expiration dates are per lease and do not assume exercise of renewal or extension options. For tenants with more than two leases, the lease expiration is shown as a range.

(2)	Represents the weighted average lease term, based on annualized rent.

(3)	Based on leases signed and commenced as of March 31, 2018.

(4)	Represents the percentage of rentable square feet of the Company’s office and retail portfolios in the aggregate.

(5)	Represents annualized base rent and current reimbursement for operating expenses and real estate taxes.

(6)	Represents the percentage of annualized rent of the Company’s office and retail portfolios in the aggregate.

Portfolio Tenant Diversification by Industry (based on annualized rent)

Page 14

First Quarter 2018

Capital Expenditures and Redevelopment Program and Leasing Opportunity

(unaudited and dollars in thousands)


	Three Months Ended
Capital expenditures	March 31, 2018		December 31, 2017		September 30, 2017		June 30, 2017		March 31, 2017
Tenant improvements—first generation	$	17,298	$	17,680	$	16,219	$	20,557	$	25,254
Tenant improvements—second generation		2,039		6,966		6,058		4,764		2,464
Leasing commissions—first generation		3,699		6,207		7,416		7,683		2,538
Leasing commissions—second generation		3,024		2,996		817		192		1,071
Building improvements—first generation		13,664		19,591		15,759		26,680		19,935
Building improvements—second generation		1,719		3,566		2,105		2,337		30
Observatory capital project		11,533		16,360		13,411		6,850		—

Total	$	52,976	$	73,366	$	61,785	$	69,063	$	51,292

Tenant space redevelopment by square feet ^{(1) (2)}

- Future redevelopment (Empire State Building) - 240,000 square feet

- Future redevelopment (other Manhattan properties) - 650,000 square feet

- Redevelopment completed - 7,090,000 square feet

Inventory of vacant space⁽²⁾

- Developed - 560,000 square feet, 85% ⁽³⁾

- Undeveloped - 100,000 square feet, 15%

Inventory of undeveloped space⁽²⁾

- Vacant - 100,000 square feet, 11%

- Expires in 2018 - 180,000 square feet, 20%

- Expires in 2019 and thereafter - 610,000 square feet, 69%


Leasing Opportunity—Inventory of Current Vacant Space as of March 31, 2018 (in square feet)
Total Portfolio vacant space										1,205,000

Signed leases not commenced (“SLNC”):
Manhattan Office Properties SLNC										327,000
Greater New York Office Properties SLNC										3,000
Retail Properties SLNC										13,000
Redeveloped Manhattan Office space										461,000
Greater New York Office Properties space										169,000
Retail Properties space										61,000
Undeveloped Manhattan Office space										60,000
Space held off market										72,000
Other										39,000

Total										1,205,000

Development of Space Expected to Vacate from March 31, 2018 through December 31, 2018 (in square feet)
	Expected Vacates		2018		2019		2020		Thereafter
Tenant Vacates
Developed		91,999
Undeveloped space to be developed		6,278		—		3,966		1,727		585

		98,277

Intentional Vacates
Developed		30,794
Undeveloped space to be developed		70,290		40,121		24,231		—		5,938

		101,084

Notes:

⁽¹⁾	These estimates are based on the Company’s current budgets and are subject to change.

⁽²⁾

Redevelopment program is for the Manhattan office assets only. Square footage based on market measurement. Developed space includes space that has been demolished and completed asbestos abatement and available for lease up or ready to be prebuilt. Permanent building use spaces, amenity spaces and broadcasting spaces are excluded.

⁽³⁾	Includes 461,000 square feet of redeveloped Manhattan office space, 38,000 square feet of redeveloped retail space and the balance reflects space held off-market.

Page 15

First Quarter 2018

Observatory Summary

(unaudited and in thousands)


			Three Months Ended
Observatory NOI	Twelve Months to Date		March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Observatory revenue	$	127,427	$	21,249		$	32,906		$	39,306		$	33,966		$	20,940
Observatory expenses		30,356		7,336			7,196			8,648			7,176			7,255

NOI		97,071		13,913			25,710			30,658			26,790			13,685
Intercompany rent expense ⁽¹⁾		77,829		13,561			20,292			23,301			20,675			13,378

NOI after intercompany rent	$	19,242	$	352		$	5,418		$	7,357		$	6,115		$	307


Observatory Metrics
Number of visitors				660,000			1,014,000			1,276,000			1,126,000			636,000
Change in visitors year over year				3.8	%		(5.1	%)		(4.8	%)		0.2	%		(11.5	%)
Number of bad weather days (“BWD”) ⁽²⁾				15			10			14			15			22
Estimated effect of BWD’s on number of visitors⁽³⁾				(14,000	)		(2,000	)		(38,000	)		(65,000	)		n/a
102nd floor revenue ⁽⁴⁾			$	83		$	2,767		$	3,537		$	3,139		$	1,933

Notes:

(1)	The observatory pays a market-based rent payment comprised of fixed and percentage rent to the Empire State Building. Intercompany rent is eliminated upon consolidation.

(2)	The Company defines a bad weather day as one in which the top of the Empire State Building is obscured from view for more than 50% of the day.

(3)	This metric commenced in the second quarter 2017. Represents an estimated reduction in the number of visitors due to bad weather days compared to the same quarter in the prior year.

(4)	Reflects revenues derived from the 102nd floor observatory. This revenue is included in total observatory revenues above and will be broken out separately throughout the duration of the observatory capital improvement program.

Annual Observatory Revenues 2013 to 2017

Page 16

First Quarter 2018

Condensed Consolidated Balance Sheets

(unaudited and dollars in thousands)


	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Assets
Commercial real estate properties, at cost:
Land	$	201,196		$	201,196		$	201,196		$	201,196		$	201,196
Development costs		7,986			7,986			7,978			7,978			7,977
Building and improvements		2,495,901			2,458,473			2,398,964			2,347,435			2,292,363

		2,705,083			2,667,655			2,608,138			2,556,609			2,501,536
Less: accumulated depreciation		(678,250	)		(656,900	)		(631,916	)		(605,481	)		(581,703	)

Commercial real estate properties, net		2,026,833			2,010,755			1,976,222			1,951,128			1,919,833
Cash and cash equivalents		690,471			464,344			432,105			440,958			532,442
Restricted cash		61,699			65,853			64,020			68,011			62,464
Tenant and other receivables, net		25,156			28,329			34,661			23,995			20,580
Deferred rent receivables, net		184,667			178,629			172,665			165,470			158,005
Prepaid expenses and other assets		39,393			61,028			39,463			54,624			36,815
Deferred costs, net		255,844			262,701			268,132			263,392			270,456
Acquired below-market ground leases, net		366,271			368,229			370,187			372,144			374,102
Goodwill		491,479			491,479			491,479			491,479			491,479

Total assets	$	4,141,813		$	3,931,347		$	3,848,934		$	3,831,201		$	3,866,176

Liabilities and Equity
Mortgage notes payable, net	$	610,826		$	717,164		$	720,830		$	724,312		$	754,548
Senior unsecured notes, net		1,043,677			707,895			592,914			592,073			591,232
Unsecured term loan facility, net		263,777			263,662			263,546			263,114			263,019
Unsecured revolving credit facility		—			—			—			—			—
Accounts payable and accrued expenses		106,830			110,849			142,690			136,617			125,910
Acquired below-market leases, net		62,418			66,047			70,013			74,083			78,246
Deferred revenue and other liabilities		37,499			40,907			41,320			27,380			31,097
Tenants’ security deposits		43,448			47,086			47,395			49,669			47,198

Total liabilities		2,168,475			1,953,610			1,878,708			1,867,248			1,891,250
Total equity		1,973,338			1,977,737			1,970,226			1,963,953			1,974,926

Total liabilities and equity	$	4,141,813		$	3,931,347		$	3,848,934		$	3,831,201		$	3,866,176

Page 17

First Quarter 2018

Condensed Consolidated Statements of Income

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Revenues
Rental revenue	$	122,311		$	123,596		$	122,391		$	120,844		$	117,113
Tenant expense reimbursement		17,794			19,790			20,346			17,569			15,974
Observatory revenue		21,249			32,906			39,306			33,966			20,940
Lease termination fees		622			3,197			1,165			1,251			7,938
Third party management and other fees		463			312			345			392			351
Other revenue and fees		6,057	⁽¹⁾		3,269			3,767			3,102			2,638

Total revenues		168,496			183,070			187,320			177,124			164,954
Operating expenses
Property operating expenses		44,185			41,522			41,270			38,529			42,210
Ground rent expenses		2,331			2,332			2,331			2,332			2,331
General and administrative expenses		12,628			13,749			12,899			12,579			11,088
Observatory expenses		7,336			7,196			8,648			7,176			7,255
Real estate taxes		26,744			26,465			26,901			24,542			24,558
Depreciation and amortization		39,883			40,842			38,490			40,532			40,846

Total operating expenses		133,107			132,106			130,539			125,690			128,288

Total operating income		35,389			50,964			56,781			51,434			36,666
Other income (expense)
Interest expense		(17,591	)		(16,364	)		(16,890	)		(17,477	)		(17,742	)
Loss on early extinguishment of debt		—			—			(2,157	)		—			—
Loss from derivative financial instruments		—			—			—			(42	)		(247	)

Income before income taxes		17,798			34,600			37,734			33,915			18,677
Income tax (expense) benefit		260			(2,340	)		(2,245	)		(2,556	)		468

Net income		18,058			32,260			35,489			31,359			19,145
Perpetual preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(234	)
Net income attributable to non-controlling interests		(8,056	)		(14,754	)		(16,449	)		(14,541	)		(8,926	)

Net income attributable to common stockholders	$	9,768		$	17,272		$	18,806		$	16,584		$	9,985

Weighted average common shares outstanding
Basic		162,667			159,989			158,102			157,921			156,493

Diluted		296,827			297,898			297,871			298,398			297,962

Net income per share attributable to common stockholders
Basic and diluted	$	0.06		$	0.11		$	0.12		$	0.10		$	0.06

Dividends per share	$	0.105		$	0.105		$	0.105		$	0.105		$	0.105

Notes:

(1)	Includes a $2.8 million settlement reached with a former broadcast tenant.

Page 18

First Quarter 2018

Funds from Operations (“FFO”), Modified Funds From Operations (“Modified FFO”), Core Funds from

Operations (“Core FFO”), Core Funds Available for Distribution (“Core FAD”) and EBITDA

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	March 31, 2018			December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017
Reconciliation of Net Income to FFO, Modified FFO and Core FFO
Net Income	$	18,058		$	32,260		$	35,489		$	31,359		$	19,145
Preferred unit distributions		(234	)		(234	)		(234	)		(234	)		(234	)
Real estate depreciation and amortization		39,468			40,484			38,134			40,132			40,424

FFO attributable to common stockholders and non-controlled interests		57,292			72,510			73,389			71,257			59,335
Amortization of below-market ground lease		1,958			1,958			1,957			1,958			1,958

Modified FFO attributable to common stockholders and non-controlled interests		59,250			74,468			75,346			73,215			61,293
Deferred tax asset write-off		—			446			—			—			—
Loss on early extinguishment of debt		—			—			2,157			—			—

Core FFO attributable to common stockholders and non-controlled interests	$	59,250		$	74,914		$	77,503		$	73,215		$	61,293

Total weighted average shares and Operating Partnership Units
Basic		296,824			296,654			296,389			296,388			296,388

Diluted		296,827			297,898			297,871			298,398			297,962

FFO attributable to common stockholders and non-controlled interests per share
Basic	$	0.19		$	0.24		$	0.25		$	0.24		$	0.20

Diluted	$	0.19		$	0.24		$	0.25		$	0.24		$	0.20

Modified FFO attributable to common stockholders and non-controlled interests per share
Basic	$	0.20		$	0.25		$	0.25		$	0.25		$	0.21

Diluted	$	0.20		$	0.25		$	0.25		$	0.25		$	0.21

Core FFO attributable to common stockholders and non-controlled interests per share
Basic	$	0.20		$	0.25		$	0.26		$	0.25		$	0.21

Diluted	$	0.20		$	0.25		$	0.26		$	0.25		$	0.21

Reconciliation of Core FFO to Core FAD
Core FFO	$	59,250		$	74,914		$	77,503		$	73,215		$	61,293
Add:
Amortization of deferred financing costs		1,034			1,036			1,017			1,331			1,294
Non-real estate depreciation and amortization		415			358			356			400			422
Amortization of non-cash compensation expense		4,555			3,292			3,841			3,813			3,154
Amortization of debt discount		668			667			668			668			668
Deduct:
Straight-line rental revenues		(5,853	)		(5,963	)		(6,861	)		(7,722	)		(5,998	)
Amortization of debt premiums		(949	)		(1,737	)		(1,736	)		(1,737	)		(1,737	)
Above/below-market rent revenue amortization		(1,168	)		(1,567	)		(1,607	)		(1,119	)		(1,428	)
Corporate capital expenditures		—			(5	)		—			(10	)		(382	)
Tenant improvements—second generation		(2,039	)		(6,966	)		(6,058	)		(4,764	)		(2,464	)
Building improvements—second generation		(1,719	)		(3,566	)		(2,105	)		(2,337	)		(30	)
Leasing commissions—second generation		(3,024	)		(2,996	)		(817	)		(192	)		(1,071	)

Core FAD	$	51,170		$	57,467		$	64,201		$	61,546		$	53,721

Reconciliation of Net Income to EBITDA
Net income	$	18,058		$	32,260		$	35,489		$	31,359		$	19,145
Interest expense		17,591			16,364			16,890			17,477			17,742
Income tax expense (benefit)		(260	)		2,340			2,245			2,556			(468	)
Depreciation and amortization		39,883			40,842			38,490			40,532			40,846

EBITDA	$	75,272		$	91,806		$	93,114		$	91,924		$	77,265

Page 19

First Quarter 2018

Debt Summary

(unaudited and dollars in thousands)


	March 31, 2018								December 31, 2017
				Weighted Average								Weighted Average
Debt Summary	Balance			Interest Rate			Maturity (Years)		Balance			Interest Rate			Maturity (Years)
Fixed rate mortgage debt	$	617,361			4.10	%		10.8	$	721,224			4.78	%		6.1
Senior unsecured notes		1,050,000			3.82	%		8.9		715,000			3.57	%		6.9
Unsecured term loan facility ⁽¹⁾		265,000			3.35	%		4.4		265,000			3.35	%		4.7

Total fixed rate debt		1,932,361			3.84	%		8.8		1,701,224			4.05	%		6.2
Unsecured revolving credit facility		—			—			3.4		—			—			3.7

Total variable rate debt		—			—			3.4		—			—			3.7


Total debt		1,932,361			3.84	%		8.8		1,701,224			4.05	%		6.2

Discount		(3,651	)							(3,370	)
Deferred financing costs, net		(10,430	)							(9,133	)

Total	$	1,918,280							$	1,688,721

Note:

⁽¹⁾	Beginning August 2017, LIBOR was fixed at 2.1485% under a variable to fixed interest rate swap agreement.

⁽²⁾	Capitalized interest for first quarter 2018 was $0.4 million.


Available Capacity	Facility		Outstanding at March 31, 2018		Letters of Credit		Available Capacity
Unsecured revolving credit facility ⁽¹⁾	$	1,100,000	$	—	$	—	$	1,100,000

Covenant Summary

Required

Current
Quarter

In
Compliance

Maximum Total Leverage⁽²⁾

< 60

28.7

Yes

Maximum Secured Debt

< 40

9.1

Yes

Minimum Fixed Charge Coverage

> 1.50

4.4

Yes

Minimum Unencumbered Interest Coverage

> 1.75

7.3

Yes

Maximum Unsecured Leverage

< 60

24.9

Yes

Minimum Tangible Net Worth

1,249,392

1,723,990

Yes

Notes:

⁽¹⁾

The unsecured revolving credit and term loan facility has an accordion feature allowing for an increase in maximum aggregate principal balance to $1.75 billion under certain circumstances. This unsecured revolving credit facility matures in August 2021 with two additional six-month extension options.

⁽²⁾	Represents the ratio of total indebtedness to total asset value as defined and determined in accordance with the credit facility agreement.

Page 20

First Quarter 2018

Debt Detail

(unaudited and dollars in thousands)


	Stated Interest Rate (%)			Current Interest Rate (%)			Principal Balance			Maturity Date		Amortization
Fixed rate mortgage debt:
Metro Center		3.59	%		3.59	%	$	93,428			11/5/2024	30 years
10 Union Square		3.70	%		3.70	%		50,000			4/1/2026	Interest only
1542 Third Avenue		4.29	%		4.29	%		30,000			5/1/2027	Interest only
First Stamford Place ⁽¹⁾		4.28	%		4.28	%		180,000			7/1/2027	5 years interest only; 30 years thereafter
1010 Third Avenue and 77 West 55th Street		4.01	%		4.01	%		39,534			1/5/2028	30 years
10 Bank Street		4.23	%		4.23	%		34,399			6/1/2032	25 years
383 Main Avenue		4.44	%		4.44	%		30,000			6/30/2032	5 years interest only; 30 years thereafter
1333 Broadway		4.21	%		4.21	%		160,000			2/5/2033	Interest only

Total mortgage debt								617,361
Exchangeable senior unsecured notes		2.63	%		2.63	%		250,000			8/15/2019	Interest only
Unsecured revolving credit facility		LIBOR plus 1.10	%		2.98	%		—			8/29/2021	Interest only
Unsecured term loan facility ⁽²⁾		LIBOR plus 1.20	%		3.35	%		265,000			8/29/2022	Interest only
Senior unsecured notes (Series A)		3.93	%		3.93	%		100,000			3/27/2025	Interest only
Senior unsecured notes (Series B)		4.09	%		4.09	%		125,000			3/27/2027	Interest only
Senior unsecured notes (Series C)		4.18	%		4.18	%		125,000			3/27/2030	Interest only
Senior unsecured notes (Series D)		4.08	%		4.08	%		115,000			1/22/2028	Interest only
Senior unsecured notes (Series E)		4.26	%		4.26	%		160,000			3/22/2030	Interest only
Senior unsecured notes (Series F)		4.44	%		4.44	%		175,000			3/22/2033	Interest only

Total / weighted average debt					3.84	%		1,932,361

Discount								(3,651	)
Deferred financing costs, net								(10,430	)

Total							$	1,918,280

Notes:

⁽¹⁾	Represents a $164 million mortgage loan bearing interest at 4.09% and a $16 million loan bearing interest at 6.25%.

⁽²⁾	Beginning August 2017, LIBOR was fixed at 2.1485% under a variable to fixed interest rate swap agreement.

Page 21

First Quarter 2018

Debt Maturities and Ground Lease Commitments

(unaudited and dollars in thousands)


Year	Amortization		Maturities ⁽¹⁾		Total			Percentage of Total Debt			Weighted Average Interest Rate of Maturing Debt
2018	$	2,749	$	—	$	2,749			0.1	%		n/a
2019		3,790		250,000		253,790			13.1	%		2.63	%
2020		3,938		—		3,938			0.2	%		n/a
2021		4,090		—		4,090			0.2	%		n/a
2022		5,628		265,000		270,628			14.0	%		3.35	%
Thereafter		41,744		1,355,422		1,397,166			72.4	%		4.15	%

Total debt	$	61,939	$	1,870,422		1,932,361			100.0	%		3.84	%

Discount						(3,651	)
Deferred financing costs, net						(10,430	)

Total					$	1,918,280

Note:

(1)	Assumes no extension options are exercised.

Debt Maturity Profile

Ground Lease Commitments


Year	1350 Broadway		1400 Broadway		111 West 33rd Street		Total
2018	$	81	$	506	$	551	$	1,138
2019		108		675		735		1,518
2020		108		675		735		1,518
2021		108		675		735		1,518
2022		108		675		735		1,518
Thereafter		2,223		11,475		39,996		53,694

	$	2,736	$	14,681	$	43,487	$	60,904

Page 22

First Quarter 2018

Supplemental Definitions

Funds From Operations (“FFO”)

We compute FFO in accordance with the “White Paper” on FFO published by the National Association of Real Estate Investment Trusts, or NAREIT, which defines FFO as net income (loss) (determined in accordance with GAAP), excluding impairment writedowns of investments in depreciable real estate and investments in in-substance real estate investments, gains or losses from debt restructurings and sales of depreciable operating properties, plus real estate-related depreciation and amortization (excluding amortization of deferred financing costs), less distributions to non-controlling interests and gains/losses from discontinued operations and after adjustments for unconsolidated partnerships and joint ventures. FFO is a widely recognized non-GAAP financial measure for REITs that we believe, when considered with financial statements determined in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. In addition, FFO is useful to investors as it captures features particular to real estate performance by recognizing that real estate has generally appreciated over time or maintains residual value to a much greater extent than do other depreciable assets. Investors should review FFO, along with GAAP net income, when trying to understand an equity REIT’s operating performance. We present FFO because we consider it an important supplemental measure of our operating performance and believe that it is frequently used by securities analysts, investors and other interested parties in the evaluation of REITs. However, because FFO excludes depreciation and amortization and captures neither the changes in the value of our properties that result from use or market conditions nor the level of capital expenditures and leasing commissions necessary to maintain the operating performance of our properties, all of which have real economic effect and could materially impact our results of operations, the utility of FFO as a measure of its performance is limited. There can be no assurance that FFO presented by us is comparable to similarly titled measures of other REITs. FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. Although FFO is a measure used for comparability in assessing the performance of REITs, as the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one company to another.

Modified Funds From Operations (“Modified FFO”)

Core Funds From Operations (“Core FFO”)

Core FFO adds back to Modified FFO the following items: deferred tax asset write-off, loss on early extinguishment of debt and acquisition expenses. The Company presents Core FFO because it considers it an important supplemental measure of its operating performance in that it excludes non-recurring items. There can be no assurance that Core FFO presented by the Company is comparable to similarly titled measures of other REITs. Core FFO does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FFO is not indicative of cash available to fund ongoing cash needs, including the ability to make cash distributions. In future periods, we may also exclude other items from Core FFO that we believe may help investors compare our results.

Core Funds Available for Distribution (“Core FAD”)

In addition to Core FFO, we present Core FAD by (i) adding to Core FFO non-real estate depreciation and amortization, the amortization of deferred financing costs, amortization of debt discounts and non-cash compensation expenses and (ii) deducting straight line rent, recurring second generation leasing commissions, tenant improvements, prebuilts, capital expenditures, furniture, fixtures & equipment, amortization of debt premiums and above/below market rent revenue. Core FAD is presented solely as a supplemental disclosure that we believe provides useful information regarding our ability to fund our dividends. Core FAD does not represent cash generated from operating activities and should not be considered as an alternative to net income (loss) determined in accordance with GAAP or to cash flow from operating activities determined in accordance with GAAP. Core FAD is not indicative of cash available to fund ongoing cash needs., including the ability to make cash distributions. There can be no assurance that Core FAD presented by us is comparable to similarly titled measures of other REITs.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure of performance. NOI is used by our management to evaluate and compare the performance of our properties and to determine trends in earnings and to compute the fair value of our properties as it is not affected by; (i) the cost of funds of the property owner, (ii) the impact of depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets that are included in net income computed in accordance with GAAP, (iii) acquisition expenses, loss on early extinguishment of debt and loss from derivative financial instruments or (iv) general and administrative expenses and other gains and losses that are specific to the property owner. The cost of funds is eliminated from net operating income because it is specific to the particular financing capabilities and constraints of the owner. The cost of funds is also eliminated because it is dependent on historical interest rates and other costs of capital as well as past decisions made by us regarding the appropriate mix of capital which may have changed or may change in the future. Depreciation and amortization expenses as well as gains or losses from the sale of operating real estate assets are eliminated because they may not accurately represent the actual change in value in our office or retail properties that result from use of the properties or changes in market conditions. While certain aspects of real property do decline in value over time in a manner that is reasonably captured by depreciation and amortization, the value of the properties as a whole have historically increased or decreased as a result of changes in overall economic conditions instead of from actual use of the property or the passage of time. Gains and losses from the sale of real property vary from property to property and are affected by market conditions at the time of sale which will usually change from period to period. These gains and losses can create distortions when comparing one period to another or when comparing our operating results to the operating results of other real estate companies that have not made similarly timed, purchases or sales. We believe that eliminating these costs from net income is useful because the resulting measure captures the actual revenue, generated and actual expenses incurred in operating our properties as well as trends in occupancy rates, rental rates and operating costs. However, the usefulness of NOI is limited because it excludes general and administrative costs, interest expense, depreciation and amortization expense and gains or losses from the sale of properties, and other gains and losses as stipulated by GAAP, the level of capital expenditures and leasing costs necessary to maintain the operating performance of our properties, all of which are significant economic costs. NOI may fail to capture significant trends in these components of net income which further limits its usefulness. NOI is a measure of the operating performance of our properties but does not measure our performance as a whole. NOI is therefore not a substitute for net income as computed in accordance with GAAP. This measure should be analyzed in conjunction with net income computed in accordance with GAAP. Other companies may use different methods for calculating NOI or similarly titled measures and, accordingly, our NOI may not-be comparable to similarly titled measures reported by other companies that do not define the measure exactly as we do.

EBITDA

We compute EBITDA as net income plus interest expense, income taxes and depreciation. We present EBITDA because we believe that EBITDA, along with cash flow from operating activities, investing activities and financing activities, provides investors with an additional indicator of its ability to incur and service debt. EBITDA should not be considered as an alternative to net income (determined in accordance with GAAP), as an indication of our financial performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of its liquidity.

Page 23